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OBALON THERAPEUTICS: Recurring Losses Cast Going Concern Doubt

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Obalon Therapeutics, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss and comprehensive loss of $4,188,000 on $703,000 of revenues for the three months ended June 30, 2020, compared to a net loss and comprehensive loss of $6,767,000 on $386,000 of revenues for the same period in 2019.

At June 30, 2020, the Company had total assets of $13,873,000, total liabilities of $6,695,000, and $7,178,000 in total stockholders’ equity.

The Company said, “Based on our cash balances and recurring losses since inception, there is substantial doubt about our ability to continue as a going concern Our ability to continue as a going concern, and correspondingly to execute on our business plan and strategy, is dependent upon our ability to accomplish one or more of the following: raise additional capital in the very near term to fund our ongoing operations or engage in a strategic alternative. If we are not able to accomplish one or more of these goals in the near term, there is a high likelihood we may need to sell all or portions of our business, liquidate all or some of our assets or seek bankruptcy protection, which could result in significant decrease in value for all stakeholders.”

A copy of the Form 10-Q is available at:

https://is.gd/GejrgA

Obalon Therapeutics, Inc., is a vertically integrated medical device-company focused on developing and commercializing innovative medical devices to treat obese and overweight people by facilitating weight loss. The company is based in Carlsbad, California.

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